DAV CENTENARY PUBLIC SCHOOL, JAGRAON
Class-XII Commerce
Assignment of Ch- Partnership (Class-XII Commerce)
1. Read the following hypothetical situation and answer the questions on the basis of the given information.
Abha and Babita were partners in a clay toy making firm sharing profits in the ratio of 2:1. On 1st April, 2023,
their capital accounts showed balances of ₹ 5,00,000 and ₹ 10,00,000 respectively. The partnership deed
provides for interest on capital @ 10% p.a. The firm earned a profit of ₹ 90,000 during the year.
(I) The amount of interest on capital allowed to Abha will be:
(A) ₹ 50,000 (B) ₹ 1,00,000(C) ₹ 60,000 (D) ₹ 30,000
(II) Babita's share in profit will be:
(A) ₹ 60,000. (B) ₹ 30,000 (C) Nil (D) ₹ 1,00,000
2. Calculate interest on drawings in following situations if rate of interest is 9% per annum.
(a) X withdrew ₹ 20,000 bimonthly at the beginning of period for the year ended March 31, 2024.
(b) Y withdrew ₹ 16,000 p.m. from September 2023 to March 2024 at the beginning of every month.
(c) Total drawings during the year amounted to ₹ 72,000.
(d) Total drawings during the year amounted to ₹ 72,000 withdrawn as: JULY 1,2023 ₹ 40,000 December 31,
2024 ₹ 32,000
(e) ₹ 50,000 were drawn on September 1, 2023 and ₹ 50,000 were again introduced into business one month
later on October 1, 2023.
3. A, B and C were partners in a firm. You are required to calculate interest on drawings @ 10% p.a. in each of
the following case.
(a) A drew ₹ 12,000 in the beginning of every month for 9 months ending March 31, 2024
(b) B withdrew ₹ 12,000 at the middle of every month for 9 months ending March 31, 2024
(c) C withdrew ₹ 12,000 at the end of every month for 9 months starting from May 31, 2024. Books are closed
on 31st March every year.
4. L and M were partners sharing profits and losses in 7:3. Capitals were ₹ 3,00,000 and ₹ 2,00,000.
Interest on capital 7% per annum.
L’s salary is ₹ 2,500 per month.
Interest on M’ Loan is ₹ 80,000 for the whole year.
Interest on drawings 8% per annum. Drawings of L and M are ₹ 36,000 and ₹ 48,000
1/10 of divisible profits to be transferred to General Reserve. L’s share of profit is ₹ 1,00,800. Find out the
profit earned by the firm before above adjustments and Prepare Profit & Loss Appropriation Account.
5. Shreya and Srishti are partners in a firm. Their capital accounts as on April 01, 2023 showed a balance of
₹
2,00,000 and ₹ 3,00,000 respectively. On July 01, 2023, Shreya introduced additional capital of ₹ 50,000 and
Srishti ₹ 60,000. On October 01, Shreya withdrew ₹ 30,000 and on January 01, 2024 Srishti withdrew ₹ 15,000
from their capitals. Interest is allowed @8% p.a. Calculate interest payable on capital to both the partners
during the financial year 2023-2024.
6. Ved and Shiv are partners sharing profits and losses in the ratio of 3:2. They agreed to share profits and
losses as follows: First ₹ 25,000 to Ved and the balance in their profit sharing ratio. The profit for the year
was ₹60,000, which has already been distributed among the partners. The opening capitals of the partners
are: Ved ₹ 50,000 and Shiv ₹36,000. Interest on capital was omitted from the books which is to be allowed at
6% p.a. Pass a rectifying entry in the books of the firm. Show the workings clearly.
7. A, B and C were partners in a firm on 1-4-2023 their capitals stood at ₹ 50,000, ₹ 25,000 and ₹ 25,000
respectively. As per the provisions of the partnership deed:
(i) C was entitled for a salary of ₹ 1,000 p.m.
(ii) Partners were entitled to interest on capital at 5% p.a.
(iii) Profits were to be shared in the ratio of capitals.
(iv) ₹ 5,000 were to be transferred to General Reserve.
The net profit for the year 2023- 24 of ₹ 33,000 was divided equally without providing for the above terms.
Pass an adjustment entry to rectify the above error.
8. A and B are partners in a firm. Their respective capital contributions are ₹ 3,00,000 and ₹1,50,000 and their
profit sharing ratio is 5:3. Immediately after the allocation of ₹ 80,000 as profit for the year ended on 31st
March, 2024, it was discovered that in arriving at the profits of 2024 the following two items had been
ignored:
(i) Outstanding expenses of ₹ 12,000; and
(ii) Accrued interest on investments ₹ 6,000. Pass an adjusting journal entry.
9. A, B and C are doing well in business since last 8 years. B has provided his personal storeroom to the firm for
the purpose of business, monthly rent of ₹ 2,000 to be paid by the firm for the same. They share profits in ratio
of 2:3:5. A was guaranteed minimum profit of ₹ 1,00,000 p.a. Any deficiency on this account was to be borne
by B and C as 60% and 40% respectively. The profit of the firm for the year ended 31st March, 2024 was ₹
4,74,000 before providing the above.
Answer the following on the basis of above case study.
(a) Net profit transferred to profit and loss appropriation account was ₹__
(b) Deficiency borne by C was ₹___ Deficiency borne by B was ₹___
10. A, B and C were in partnership. A and B sharing profits in the proportion of 3:1 and C receiving a salary of ₹
25,000 plus 5% commission of the profit after charging his salary and commission, or 1/7th of the profits of the
firm; whichever is the larger. Any excess of the latter over the former is, under the partnership agreement, to
be charged to A. The profit for the year ended on 31st March, 2024 was ₹ 2,87,000, after charging C's salary but
before charging commission.
You are required to show the distribution of profit among the partners.
